Memo Regarding Ordinance Approving A Purchase And Sale Agreement of Building 40, Located At 800 West Tower Avenue at Alameda Point, with Bladium, Inc., a California Corporation (Purchase Price: $7,900,000), September 19, 2017
1. Draft Purchase and Sale Agreement
3. Parking Area
4. Taxiway H License Area
5. Lease Agreement
The Alameda Reuse and Redevelopment Authority entered into a long term lease with Bladium, Inc. on February 1, 2000. Bladium was awarded the lease after a competitive bid process for the Building 40 hangar. Because of the investment needed to bring the building into compliance and to develop a sports facility, the lease was 35 years in term (10-year initial, a 5-year option, and two 10-year options) with an expiration of June 30, 2035. The lease included a general use provision which states, “the sole purpose for which the leased premises may be used, by the Subtenant or authorized contractors, subcontractors or licensees of Subtenant, is for light industrial use or general warehouse, office and/or recreational uses including but not limited to arena soccer, in-line volleyball, food and beverage service, go cart racing, sports tournaments, gymnastics, video games, boxing, special events and parties, retail sales and any other related uses. Bladium negotiated for an exclusivity clause to be included in their lease in order to secure the market for private sports and activities at Alameda Point and make their business more successful. City-run activities were not considered direct competition and could be conducted on the premises. If Bladium did not exercise its purchase option, the exclusivity clause would remain in effect throughout the remaining term of the lease and extinguish in 2035.